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Super Mario may hop and skip over various obstacles, but Nintendo has its feet rooted. It has stuck with the hardware model, which means game prices remain high to cover those costs. After luring in parents with its family-friendly Wii packages, it now alienates them.
Value investors have bought into the hope that Nintendo, like its game characters, can bounce back. The shares have climbed despite three years of negative operating cash flow and dividends down over 90 per cent since March 2010. This has been helped by a weaker yen (boosting the translation of overseas sales). But the share price has trailed well behind the Topix over the past few years, by 61 percentage points.Continue reading: Nintendo — Is the game up?
As the market waits for ‘Level 3 sectoral sanctions’ against Russia…
Has anyone noticed how the respective share prices of BP and Total have already performed versus the MSCI World Energy this year?Continue reading: BP and Total – the Russian discount
We asked the question, when looking at the $3bn CIT/OneWest deal this week, if bank M&A is finally back. As you are reading the Lex note, think of the following chart, based on Dealogic data, to see just how staggering the falloff in activity has been.Continue reading: Don’t take it to the bank
Lex wrote a note today arguing that Facebook shares are overvalued, by pointing out that one has to assume a mind-boggling mid-term growth rate to make sense of the $75 price tag. Here is the thumb-nail growth model used in writing the note:Continue reading: Super simple Facebook growth model